Corning Stock Falls As Q3 Earnings Miss Estimates; Expects Q4 Profit To Decline Sequentially - Corning (NYSE:GLW)

Corning Inc GLW reported third-quarter FY21 core sales growth of 21% year-on-year to $3.639 billion, marginally above the consensus of $3.63 billion.
Display Technologies sales grew 16% Y/Y to $956 million. Optical Communications sales rose 24% Y/Y to $1.13 billion as 5G, broadband, and cloud computing continue to drive growth across the segment.
Specialty Materials sales declined 2% Y/Y to $556 million. Life Sciences sales rose 37% Y/Y to $305 million.
Environmental Technologies sales increased 2% Y/Y to $385 million. The company expects Environmental Technologies sales and profit to be impacted in the fourth quarter as the semiconductor chip shortage significantly impacted the automotive industry.
The gross margin expanded 70 basis points to 38.3%. Core EPS of $0.56 missed the consensus of $0.58.
Outlook: Corning expects Q4 core sales of $3.5 billion - $3.7 billion versus the consensus of $3.64 billion.
It sees core EPS of $0.50 - $0.55, below the consensus of $0.58.
Corning anticipates FY21 core sales of $14 billion versus the consensus of $14.03 billion. It sees EPS of $2, below the consensus of $2.13.
The company expects Q4 profit to decline slightly on a sequential basis due to further reductions in automotive industry-related sales and lower Gorilla Glass sales following large product launches by customers.
Price action: GLW shares traded lower by 5.14% at $36.60 on the last check Tuesday.